Japanese Yen Plummets Against the US Dollar

The US dollar exchange rate has again appreciated against major world currencies. The US central bank (Federal Reserve/The Fed) raised its benchmark interest rate by another 75 basis points (bps), further fueling the US dollar's strength.

Based on Yahoo Finance data, the US dollar index closed up 0.42 percentage points (0.38%) to 110.64 on Wednesday (September 21, 2022), compared to the previous day's close.

Of the six major world currencies, the Japanese yen depreciated the most against the US dollar, by 24.87% to 143.6 per US dollar on September 21, 2022, compared to its year-to-date (YTD) position at the end of last year.

Next, the Swedish krona weakened against the US dollar by 20.39% (YTD) to 10.89 per US dollar. The British pound sterling also weakened by 15.68% (YTD) to 1.1381 US dollars, and the euro depreciated by 11.96% (YTD) to 0.9971 US dollars.

Similarly, the Swiss franc weakened by 5.47% (YTD) to 0.9637 US dollars, and the Canadian dollar depreciated by 4.86% (YTD) to 1.3363 per US dollar.

For information, from March to September 2022, the Fed raised its benchmark interest rate by 300 bps to 3.25%. This is what has made the US dollar dominant against world currencies.